# In the matter of Chandrakant Hiralal Shah
Vs.
Beacon Trusteeship Ltd. & Anr. Company Appeal (AT) (Insolvency) No. 590 of 2022

> NCLAT judgment dated 2022-08-12. Citation: TCN-2022-NCLAT-00289. The appeal was filed against an order dated 04.05.2022 by the Adjudicating Authority…

- **Court:** NCLAT
- **Order date:** 12 Aug 2022
- **Citation:** TCN-2022-NCLAT-00289
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/chandrakant-hiralal-shah-vs-beacon-trusteeship-ltd-anr-company-appeal-456aee8b

## Summary

### Background

The appeal was filed against an order dated 04.05.2022 by the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench-IV, which admitted a Section 7 application filed by Respondent No. 1. The Adjudicating Authority found that the Corporate Debtor defaulted on debt payment. The application was filed for a claim of Rs. 502,91,64,495, with a default date of 30.04.2019.

## Facts

Chandrakant Hiralal Shah, the Director (Suspended), filed an appeal against the order of the Adjudicating Authority (National Company Law Tribunal), Mumbai Bench-IV, which admitted a Section 7 application filed by Beacon Trusteeship Ltd. & Anr. The application was filed for a claim of Rs. 502,91,64,495, with a default date of 30.04.2019. The Adjudicating Authority found that the Corporate Debtor defaulted on debt payment. The appellant's counsel submitted that the Appellant approached the Financial Creditor for settlement after the order was passed. The respondent's counsel denied any settlement talks.

## Issues and analysis

### Issue 1: Whether the Adjudicating Authority erred in admitting the Section 7 application filed by the …

**Ratio:** The Adjudicating Authority has the power to admit a Section 7 application if it finds

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**Reasoning:** The court found no error in the Adjudicating Authority's order admitting the Section 7

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**Interpretation:** Section 7 of the IBC allows a financial creditor to initiate corporate

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**Application:** The court applied the principle that the Adjudicating Authority can admit a

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## Parties

- **Judges:** Ashok Bh…; Rakesh…; +1 more
- **Appellants:** Chandrakant…
- **Respondents:** Beacon Trusteeship…

## Timeline

- **2022-08-12 — Hearing of…**: Learned counsel for the…
- **2022-05-04 — Order by Adjudicating…**: The Adjudicating Authority (National Company Law Tribunal), Mumbai Bench-IV, admitted…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 7 — Initiation of corporate insolvency resolution…](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-7)

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